Apple today sent notice that it was phasing out the Xserve. The rackmount server will be discontinued as of January 31, 2011, and the currently available 160GB, 1TB and 2TB Apple Drive Modules will ship through the end of 2011 or until stock runs out. The company plans to honor AppleCare warranties and will have repair parts for up to seven years in California and five years in the rest of the world.